Need Input to close this CA deal. Where can I have done better?

[Nixon Vayupak]

Just recently, I received a call from one of my yellow letter mailers.  The property is located here in Southern California in a very demanding part of Orange County block away from Roosmore.  High overview, the mother passed away in March of 2014 and the property was left in a trust to three heirs.  All three of them are in their late 60's and above. I went out to check out the property and spoke to the brother.  Here is the breakdown:

Single Family Residence

3 Beds, 2.75 Baths
1,733 Sqft
Year Built: 1961
Lot Size: 7620 Sqft

3 Bedrooms? 2.75 Bathrooms? ** 1,325 to 1,909 Square Feet ** $401 to $573 per Sq. Foot
Built between 1959 and 1963 ** 51 to 55 years old ** Market reports average homes in this area are in the $800,000.00 low to med.

GoPro video of the house walk thru of the property
www.youtube.com/watch?v=OXBporme8Es&list=UUattjUJJitzsizoGUl2aLZQ&index=3

Rather than assuming the value in the low to mid $800k I approached it on a conservative level and assumed that the ARV would be $770K - 88K of repair cost.

After walking thru the property and talking to one of the owners.  I was able to find out that the property is free and clear with no liens.  The heirs would consider owner financing if the deal makes sense.  But it would require an agreement with all three siblings involved.  Which made it very difficult since only one of them was there and the other two where in different parts of Southern California. Also, they are not in the hurry for money, but would like to let go of the property since nobody can maintain it.

So, when negotiating with the seller, their first initial offer was 750K and they felt that the market value of the house was in the 800K.  Using @Michael Quarles  approach from the podcast, I repeated their suggested amount and asked if they can go lower.  The response was then 725K to 680K. The amount was way to far for me to accept, so we started talking some more and nothing was accomplished since the owner indicated he would need to discuss more with his sisters.  So he asked me to send him a proposal.  With that being said, I provided him with the following offer:

OFFER OPTIONS

OFFER 1.

$497,000.00 (All CASH offer)

OFFER 2.

$558,800.00 (5% down – Balance Paid off in 6 MONTHS)

OFFER 3.

$625,000.00 OWNER FINANCING (5% at close – balance paid at 4% - 30 years amortization – 10 years payoff)

So below is the response from the seller:

Dear Nixon,

Thank you for taking the time to visit and evaluate our property at XXXX Los Alamitos, CA.

I have met with my two sisters, Gay and Joy. We have evaluated your proposals, and sorry to say they do not meet our goal in the sale of this property. We truly believe the area is and will continue to grow in value as everything is in Orange County.

Due to this, we are declining your offers, and have settled on lowering our price to NO LESS than $630,000. This would be a “cash only” sale, with the house and property “AS IS.” In this sale, buyer will pay for any and all expenses associated with the sale of this house and property. All taxes are current, there is nothing owed on the property, and there are no liens.

Thank You,
Jim, Gay & Joy

So, to my fellow BP's can any of you provide me any suggestions how I may improve this deal, future tips or better yet salvage it.  Any suggestions is deeply appreciated.

Best,

Nixon